Andrew B. Paterson, President and Chief Executive Officer, is pleased to announce Paterson GlobalFoods involvement in Terminal West Ltd.
The Competition Bureau announced today that Terminal West Ltd. has been selected as purchaser of Agricore United’s AUV grain handling terminal in the Port of Vancouver.
“The Bureau is very pleased that this transaction is moving towards a successful conclusion,” said Sheridan Scott, the Commissioner of Competition. “The sale of the AUV terminal resolves the substantial lessening of competition for gran handling services in the Port of Vancouver created by the acquisition of Agricore Cooperative Ltd. by United Grain Growers Ltd. in 2001.”
The divestiture is in accordance with the October 2002 consent agreement between the Commissioner and United Grain Growers Ltd. requiring the merged entity to divest one of its grain handling terminals in the Port of Vancouver. This was required in order to eliminate the substantial lessening of competition resulting from UGG’s acquisition of Agricore in 2001. The merged entity has since been carrying on business as Agricore United. Grant Thornton Limited was appointed as trustee in May 2006 to conduct the sale process.
The purchase by Terminal West Ltd. has been approved by the Commissioner, as required by the October 2002 consent agreement, and was not objected to by Agricore United. The Vancouver Port Authority must still approve Terminal West as a lessee of the AUV Terminal premises. A decision in respect of that matter is expected by the end of May and closing of the transaction is anticipated at the end of June.
Terminal West is a consortium composed of Paterson GlobalFoods Inc., Parrish & Heimbecker Ltd., Prairie West Terminal Ltd., Weyburn Inland Terminal Ltd., Great Sandhills Terminal Marketing Centre Ltd., and North West Terminal Ltd.